As a first-time investor with a stable income, should I start my first buy-to-let purchase in a limited company straight away, or is it better to buy personally and consider a company later? What's the minimum number of properties or portfolio value where a company makes sense from day one?
Quick Answer
For a first-time buy-to-let, personal ownership is often simpler, offering SDLT relief. A limited company typically becomes more advantageous when scaling a portfolio, especially for higher-rate taxpayers, due to Corporation Tax rates of 19-25% versus personal income tax.
About This Topic
First-time buy-to-let investors debated: personal vs. limited company. Compare SDLT, mortgage costs, and tax efficiency for single properties vs. portfolio growth. From April 2025, limited companies pay 5% SDLT surcharge.
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